Binance has revealed that it is "preparing to launch trading services for users in Japan" - and is currently in advanced negotiations with the Yahoo Japan operator operating a legally authorized cryptocurrency exchange in the country.
In an official post, Binance said he had "entered into a strategic partnership discussion" with Z Corporation and the holding company Z Holdings Corporation which operates Yahoo Japan, one of the country's largest search engines and Internet platforms.
How was this Holding born?
Z Holding Corporation was born as a partnership between Yahoo America and the Japanese commercial giant SoftBank, which holds a 48% stake in Yahoo Japan. Yahoo America is no longer associated with Yahoo Japan. And Yahoo Japan, in turn, holds a stake in the recently renamed TaoTao exchange.
The exchange, formerly known as BitARG, was one of the first to receive an operating license from the Financial Services Agency (FSA) which has a notoriously strict compliance policy. Therefore, many Japanese companies have tried to purchase smaller, already authorized exchanges.
Binance CEO Changpeng Zhao approached Twitter to discuss the partnership agreement, writing, “Many non-Japanese people may not understand its meaning. […] I couldn't ask for a better partner than TaoTao in Japan. " The partnership could potentially detonate the Japanese cryptocurrency worldwide.
Softbank is already involved in the blockchain and cryptocurrency affairs, and in recent years has made major investments related to the blockchain. Yahoo Japan has integrated Ripple MoneyTap technology into its PayPay mobile e-pay solution.
And a principle of agreement is still on the table of Yahoo Japan for a possible merger with Line, the largest Japanese chat app. Line's largest shareholder is Naver, an Internet giant from South Korea. Line operates a variety of cryptocurrency exchanges, including an FSA-licensed trading platform in Japan.
Fight against rivals?
This move could be part of a complicated Binance plan to break into the lucrative East Asian market. The rival exchange Huobi has already established rapidly growing exchanges in both Seoul and Tokyo. Last year, Binance partnered with a subsidiary of the South Korean Kakao, operator of the blockchain platform Klaytn.
Binance was previously advised by the FSA that overseas-based exchanges may not actively attract Japanese customers without an operating permit. As reported, the company said yesterday that Binance.com will gradually phase out the provision of services to Japanese residents and gradually limit transactions.
And for Business Korea, Binance has now made an unspecified investment in the South Korean stablecoin issuer and the blockchain startup BXB. The press release quotes Binance stating "We are developing a long-term plan to drive the South Korean cryptocurrency market."
Currently, the binance coin (BNB), the exchange's native token, is trading at around 18 USD and increases by 9% in a day and by 27% in a week.